Additionally, the Internal Revenue Code provides up to $5,000 of pre-tax incentives for certain dependent care expenses annually. Dependent care expenses may include: child care in or outside of your home, pre-school costs, housekeeping expenses (if provided by a full-time live-in housekeeper). After expenses are estimated and elections are made, money will be held on account to pay for these costs. In accordance with IRS guidelines, any monies taken pre-tax must be used to pay for qualified elected benefits and must be used that calendar year or they will be forfeited to the employer.